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Is cst sale is more profitable ?
One seller (A) in delhi selling two of his customer one is in delhi(D) and other is in haryana(H).
For Example : A buying in Rs 100 and paying 5% vat, now A selling to D in Rs 100 and charging vat 5% and 2% for H against c-form.
Now, Question is if A sell outside delhi is more profitable than sell in delhi. Because A will get 3% input credit. Is this true if yes than why A will sell in delhi because there is a loss of 3%.
Replies (2)
A shall not be eligible for input on material sold against C form. Selling goods against CST is not profitable.
I have Rs 5 of Input tax credit. Now, at the time depositing tax :
1) Delhi : Rs 5 Input tax credit and vat i got from selling is also Rs 5.
5-5 = 0
2) Haryana = Rs 5 Input tax credit and CST i have received is Rs 2
5-2 = 3 Refund.
therefore, CST sale is more profitable. This is my question Dear MR AMBUJ
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